Port parts ways with CEO

Darbeau got jobs for son, friend, with agency tenants

The Port of San Diego parted ways with CEO Wayne Darbeau on Friday, after weeks of reviewing his dealings with agency tenants.

The vote was 6-1, with no public discussion. Commissioner Dukie Valderrama voted no, and declined later to say why.

As part of a severance agreement, the agency put out a news release touting Darbeau’s many accomplishments. But the severance agreement states, “the District Board of Port Commissioners does not believe that Darbeau should continue to serve as the Executive Director of the District.”

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The agreement puts Darbeau on paid leave through Dec. 30, and asks him to hand over his keys and relinquish any access to port equipment or property.

At the end of the paid leave, Darbeau — whose annual base salary is $267,800 — will receive an additional six months of severance pay. The port will also cover $10,000 of his legal fees from an internal review of his conduct.

Darbeau, 61, declined to comment when reached by phone Friday night. He has been CEO since October 2010 and has worked at the port since 1998.

In a statement released by the port, he said, “I have been most gratified as CEO to have had the privilege of leading such a talented team of outstanding professionals and just plain hardworking employees throughout the Port District and to have worked closely with an engaged board and region.”

Document

Darbeau has been under review since May 20, when U-T Watchdog revealed that he was soliciting port tenants for summer jobs for his son, even as those tenants engaged in significant negotiations with the port over leases and other issues.

Port officials said they were unaware of the solicitations before the Watchdog report. They launched an internal review, which encompassed 10 banker’s boxes of documents. But the port has said nothing about what issues it uncovered by going through them, or what caused Darbeau’s ouster.

An outside law firm conducted the review, and the U-T has asked for a copy of the firm’s work product.

The commissioners met five times in private on the matter.

The U-T reported that Darbeau’s son and a family friend received jobs with vehicle importer Pasha Automotive in the summer of 2012 at Darbeau’s request. The company, which operates the National City Marine Terminal for the port, went on to receive discounts and other considerations on its dealings with the port.

Several discounts and eased contract provisions came to light in thousands of pages of documents released to U-T Watchdog under the California Public Records Act, some of which were reviewed in the port’s internal investigation as well.

Just this week, the U-T found a new example. The company was granted a lower transfer fee for Enterprise rental cars from June 2013 through May 2014. The company was given a rate of $7.50 per vehicle transferred by rail, as opposed to established rates of $11.85. Some storage fees were waived as well.

The port’s code of ethics prohibits, among other things, officials from using their positions to influence a district decision in which the official or a relative has a financial interest. Public records show Darbeau continued to be actively involved in Pasha negotiations and discussions during and after his son’s employment.

Darbeau has insisted that neither his son nor the company received any special treatment.

“He’s beloved there and has been since ‘98,” Black said. “We embrace mediocrity in this town, and we shoot our leaders in the derrière and this is just another fine example of yet another leader going down... This is not a crime. It was a mistake. It’s an internship for a child.”

Darbeau was on the board of directors for the American Association of Port Authorities, and officials there confirmed on Friday that he no longer serves in that capacity. Darbeau is also the president of the California Association of Port Authorities, and remains listed as such on the group’s website. The group did not return messages on Friday about his status.

Darbeau’s total compensation including benefits topped $439,390 in 2012, according to the state controller’s public pay database. He oversaw about 500 employees and $136 million in expenditures.

The port named John Bolduc of the Harbor Police as acting CEO, and will vote on his contract in August.

“John excels at motivating people. He’s affable, he’s an excellent communicator, and he’s an inspirational leader,” Chairman Bob Nelson said. “We are grateful to have John at the helm during this time of transition and reflection, and we have no doubt he’s going to serve the Port well in his new capacity, just as he has so effectively served the public during his entire professional career.”

At a post-meeting news conference, Bolduc called port employees “outstanding public servants” and said, “I have no intention of making any other changes in the executive or administrative staff.”

Ten banker's boxes are hauled into the port's offices on June 25, the day after Port Chairman Bob Nelson told a reporter that's the volume of documents being reviewed in the matter of CEO Wayne Darbeau.
— Ricky Young

Ten banker's boxes are hauled into the port's offices on June 25, the day after Port Chairman Bob Nelson told a reporter that's the volume of documents being reviewed in the matter of CEO Wayne Darbeau.
— Ricky Young